EUR/AUD technical analysis

  • Zoned Pin bar rejection.

  • NFP low is taken out.

  • Bearish trend.

  • M L3 is the target.

MEGATREND MAs: Bearish

D1 Chart EUR/AUD

EURAUD

  1. Trend line start.

  2. The top of the move.

  3. Zoned rejection.

  4. Target.

The EUR/AUD is having a zoned bearish rejection. Zoned bearish rejection means that the entry signal pattern happened exactly within the borders of the MEGATREND moving averages and the break below is a signal to enter a short. In this it is the NFP low that has been taken out. Targets for this move are 1.4619 and 1.4380.

The Reserve Bank of Australia raised interest rates by 50bp on Aug 2. In the RBA statement, Governor Lowe hinted at further rate hikes to come. Also, Lowe added that the RBA would do whatever is necessary to reduce inflation back to target in a due time. With the RBA projection inflation will be around 7.75% over 2022 and the Bank’s inflation target between 2% and 3%, this is a hint for more rate hikes to come.

This analysis, and all entry signals and targets are a part of the Megatrend trading course. I have 1 short position that I will maintain until intraday target and possible swing.The intraday target is 1.4619 while the intraweek target is similar to swing target. Swing target is 1.4380. Position management is very important once you are in a trade.

The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Majors

Cryptocurrencies

Signatures